Since 2009, I’ve been writing in regards to the significance of working to dwell—accumulating wealth to achieve financial independence and freedom ASAP. However regardless of years of advocating for this way of life, I’ve come to understand that convincing individuals stays an uphill battle. As a substitute, I now have proof that live-to-work is again and stronger than ever!
“Reside to work” describes a mindset the place an individual’s life revolves primarily round their profession or job. Individuals who “dwell to work” typically prioritize their work above private pursuits, relationships, or leisure. Their id and self-worth could also be carefully tied to their skilled achievements and productiveness.
I perceive the significance of “residing to work” if you first graduate from faculty. Constructing a profession and establishing monetary safety typically require dedication and lengthy hours. Nevertheless, there comes some extent when we have to determine what really issues and when sufficient is sufficient. In any other case, we risk looking back with regret, wishing we had the braveness to prioritize our happiness and dwell life on our personal phrases.
My Begin Of Wanting To Work To Reside
A few years earlier than retiring from finance in 2012, my spouse and I had been speeding via Venice, Italy when an older couple stopped us and stated, “Take it sluggish and go searching. There’s no hurry to get to the place you’re going.” At first, I used to be shocked, however then I noticed they had been proper. We had been speed-walking via the town like New Yorkers in Midtown Manhattan.
After I lastly constructed up the courage to negotiate a severance and depart my job, I spent late mornings sitting in Golden Gate Park, studying a e book or just having fun with the second. It was an exquisite feeling—not having to endure rush-hour visitors simply to take a seat in conferences all day. Despite the fact that I earned 85% much less in my first 12 months of retirement, I used to be happier as a result of I used to be free.
Ultimately, I might lastly benefit from the public parks and providers my six-figure tax payments had been paying for over the previous decade. It felt good to interrupt free from the live-to-work mentality—the relentless pursuit of more cash and better standing. Looking back, it was bizarre to let go at 34, however I do not remorse it at 47 immediately.
Work-to-Reside (FIRE) Is Getting Pushed Apart Once more
I shouldn’t be too shocked that the work-to-live philosophy is fading once more. In any case, I wrote the submit Why Early Retirement/FIRE Is Becoming Obsolete, which argued that elevated office flexibility had decreased the urgency to retire early. If I solely had to enter the workplace 2-3 days per week, I probably would have labored at the very least 5 years longer.
Simply final week, I performed pickleball from 2 – 3:45 PM with somebody who works at Uber. He instructed me his firm solely requires workers to be within the workplace on Tuesdays and Thursdays, giving him a four-day weekend. This season, he’s been skiing in Lake Tahoe virtually each week. On Fridays and Mondays, he takes video conferences till about 11 AM, will get in six runs on the slopes from 11:30 AM to 1 PM, after which logs again in for work.
Spending time on the pickleball and tennis courts led me to consider that extra individuals had been embracing versatile work. Nevertheless, assembly a couple of people with relaxed schedules is one factor—seeing how individuals spend their cash is one other. And from what I’ve noticed, essentially the most critical professionals—those residing to work—are literally doubling down on work submit pandemic.
The truth is that almost all of my noon pickleball companions fall into two teams: individuals of their 20s and people over 50. The youthful crowd are all renters with out youngsters, whereas the older group both runs their very own companies, has a working spouse, or lives frugally on authorities help.
Proof That Reside-to-Work Is Again And Stronger Than Ever
Among the best issues to come back out of the pandemic was widespread distant work. Past eliminating commutes and pointless face time, it additionally allowed individuals to save on housing prices by transferring farther from metropolis facilities. This pattern is likely one of the explanation why I have been investing in heartland real estate since 2016.
In San Francisco, it can save you 40%–60% on hire or dwelling costs simply by transferring 3–5 miles west. In the course of the pandemic, 1000’s relocated to thoroughly totally different cities to chop prices. Personally, I advocate for much less drastic measures—relocating within your city to scale back bills whereas preserving the identical wage, skilled community, and college district on your youngsters.
However what shocked me just lately was seeing two properties with no views promote for nicely above asking costs on San Francisco’s growing west side. They bought for greater than the properties accessible with ocean views. I had toured each properties extensively and estimated their ultimate promoting costs. I do that for each property I go to to maintain my pricing forecast abilities sharp.
For context, I’m bullish on San Francisco actual property, notably because of the development of artificial intelligence. I’m particularly optimistic in regards to the metropolis’s west aspect, pushed by new faculties, property developments, and the $4 billion UCSF Parnassus medical middle transform, which can add over 1,400 new jobs.
I believe these two properties are nice—I’m simply shocked they bought for a lot greater than my estimates, when you should buy nicer properties with views simply 0.5 – 1 miles away, for much less.
Instance #1: XX Madrone Avenue, San Francisco, CA
This totally reworked 3-bedroom, 3.5-bathroom, 2,836-square-foot dwelling within the West Portal neighborhood bought for $3,125,000 in April 2024. Given my optimistic stance on west-side San Francisco actual property, I projected a 4% appreciation in 2025, bringing its estimated worth to $3,250,000.
It was re-listed in 2025 at $2,495,000 to generate curiosity—just like its 2024 technique when it was listed on the identical value and in the end bought for $3,125,000. Nevertheless, I doubted it will go $750,000 over asking once more. That could be a scary sum of money and share to overbid.
I used to be mistaken. The house bought for $3,435,000—10% larger than its 2024 value, and $393,799 over Redfin’s estimate.
Why I Had My Doubts It Would Seel For So A lot
The house’s largest promoting level, in line with actual property brokers, was its proximity to the MUNI station. A five-minute stroll to the prepare, an eight-minute wait, a 15-minute journey, and also you’re in downtown San Francisco.
However I debated this logic with my actual property agent. “Why would somebody pay an enormous premium for a house simply to have a brief commute to work underneath fluorescent lights for 8-10 hours a day? Seems like torture. By paying that housing premium, they’re locking themselves into working even tougher to afford it.”
Her response? “What if they’ve to enter the workplace?” Good level. That ended the controversy as a result of it jogged my memory that I am on this FIRE bubble the place I refuse to work longer than I’ve to. Solely a minority of persons are private finance fans, whereas the overwhelming majority of readers of Monetary Samurai are.
Instance #2: XXX Forest Facet Avenue, San Francisco, CA
A single instance isn’t sufficient to declare a pattern for the brand new 12 months, however then I got here throughout one other. This 3-bedroom, 3-bathroom dwelling, 2,230 sqft (600 sq. toes smaller than the primary), was considerably move-in prepared, although its transform was 25–30 years outdated. So it did not really feel practically as luxurious as the primary dwelling. Actually, I’d need to spend $100,000 – $200,000 remodeling it.
It was additionally listed at $2,495,000, and I estimated it will promote for about $2.8 million. Once more, I used to be mistaken. It bought for $3,039,159—over $359,000 above Redfin’s estimate, or $1,362/sqft. By no means would I’ve guessed the house would recover from $3 million.
Why the premium? A slight skyline view from the principle bed room and a seven-minute stroll to the MUNI station as a substitute of 5. In a earlier submit, I discussed that owning a home within walking distance of everything isn’t always ideal attributable to noise and different disturbances. Being one block farther from the MUNI station, retailers, and eating places could have made this dwelling barely extra fascinating to consumers.
As soon as once more, actual property brokers confirmed that every one the consumers had been households prioritizing proximity to public transportation. Reside-to-work strikes once more! You can purchase a 300 sqft bigger, totally reworked dwelling with ocean views for 10% less.
Clearly, my recommendation for individuals to seek out extra reasonably priced properties a bit farther from work appears to be failing. And don’t be concerned, I’ve plenty more examples in addition to these two that present how working to dwell is again.
The Reside-to-Work Cycle Will Drive House Costs Greater
I’m not saying these homebuyers are obsessive about work—many merely should be within the workplace day by day. Their areas are handy—near downtown, close to transit hubs, and inside strolling distance of retailers and eating places. Once more, these are nice properties in a pleasant neighborhood.
However the actuality is that the necessity to work fuels demand for properties close to places of work and public transportation, driving costs larger. And as dwelling costs climb, extra individuals discover themselves working extra simply to afford them. Keep in mind, larger dwelling costs means extra upkeep, insurance coverage, and property taxes to pay for.
This cycle gained’t break anytime quickly, regardless of the private finance group’s finest efforts to encourage extra reasonably priced residing preparations. There’s merely an excessive amount of stress to earn extra and grow social status.
Possibly Excessive Earnings Households Wrestle On Function
There are additionally individuals who willingly endure a 45-minute commute every means to drop off their youngsters in school—for the following 8 to 12 years—just because they refuse to surrender the standing of their present neighborhood. As a substitute of transferring nearer and reducing the drive right down to underneath 10 minutes, they keep put as a result of they don’t suppose the brand new space is “fancy” sufficient.
Monetary independence is about creating choices, but we’re seeing a shift again towards working tougher simply to maintain an costly way of life. On prime of paying a premium to dwell nearer to work, many households in massive cities need to ship their youngsters to non-public faculty, which may simply price between $20,000 and $70,000 per 12 months per little one. Add on a automobile or two, holidays, positive eating, and supplemental classes for his or her youngsters, and even households making $500,000+ a year are just scraping by.
Such households aren’t being irrational—they’re selecting to pay as a result of they consider the advantages are value it. In different phrases, there is not any have to really feel sorry for them as a result of they will change their state of affairs in the event that they select. With the assistance of ProjectionLab, we performed a case research exhibiting how a $500,000/12 months family went from struggling to being able to retire early.
How Many Extra Years Will You Need to Work To Pay For A Extra Costly House?
You probably have a million-dollar mindset, saving $1 million on a house equates to ~$42,000 per 12 months in risk-free revenue—or doubtlessly $100,000 per 12 months if invested at a ten% return. Personally, I’d a lot slightly save $1 million and dwell half a mile farther away on the MUNI line with a barely longer commute than be compelled to work many extra years simply to afford my dwelling.
Let’s run the numbers. Say you might have a $600,000 family revenue—the minimal I’d suggest for comfortably affording a $3 million dwelling (5X revenue, although ideally, it should be 3X). However as a substitute of choosing a $2 million dwelling only one mile farther, you purchase the costlier one as a result of it feels extra prestigious and handy.
Now, let’s assume you’re a disciplined saver, placing away 10% of your gross revenue, or $60,000 a 12 months. That’s about 14% of your after-tax revenue of $420,000 (assuming a 30% efficient tax charge). With a 5% compound annual return, it’s going to take you 12 years to avoid wasting $1 million. Holy moly!
Are you telling me you’d slightly work 12 extra years simply to dwell barely nearer to work, slightly than purchase an analogous dwelling a bit farther away for much less and not should work for 12 further years? That’s a trade-off I wouldn’t make.
A Extra Aggressive Saver Can Sacrifice Much less Time
OK, positive. Possibly a ten% gross financial savings charge is just too low for a $600,000 family revenue earner. Let’s say you’re an distinctive saver, setting apart $180,000 a 12 months (30% of gross, 43% of internet revenue). You’re studying Monetary Samurai, in spite of everything.
Even then, selecting the $3 million dwelling over the $2 million possibility means working 5 further years—assuming a 5% annual return. And when you’re middle-aged, these 5 years are far more expensive than in your 20s. Once more, my reply is a tough no!
If you happen to’re centered on absolutely the greenback worth of properties, attempt shifting your perspective. Suppose in percentages as a substitute. Paying 50% extra for a barely shorter commute will not be value it.
I’ve written prior to now about how a big expensive home can derail your path to financial freedom. Nevertheless, I do not suppose many individuals actually care till it is too late. Do the mathematics please.
The Reside-to-Work Mindset Perpetuates Itself
Whereas some maximize work flexibility, others are paying prime greenback to make sure they will preserve working. Paradoxically, this live-to-work cycle advantages those that take part in it, as continued demand drives dwelling costs even larger. If you happen to purchase into this mindset, the most effective factor you are able to do is encourage others to do the identical—as a result of that can improve the percentages of promoting your private home for a giant revenue down the highway.
However when you’re nonetheless within the wealth accumulation part or are depressing, take a step again and ask your self: Are you working to dwell, or residing to work? As a result of when you’re not cautious, way of life inflation may entice you within the latter—with out you even realizing it.
Readers, why can we select unenjoyable work over experiencing freedom sooner? Do individuals not run the numbers and notice how the pursuit of a flowery dwelling and standing retains them trapped in a piece cycle for much longer than essential? Do you suppose the live-to-work mentality is again? How can we encourage individuals to cease following the herd and think about different life?
For brand spanking new readers: I lived to work for 13 years in funding banking. I purchased the great home in a flowery neighborhood, which solely pressured me to work tougher to afford my payments. Ultimately, I made a decision to downsize to a smaller, extra reasonably priced dwelling as a result of I wished to dwell extra. Though I misplaced status, standing, and cash, I gained one thing much more priceless—freedom.
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Change Your Life For The Higher
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